Business

Policy

• A sound policy of macro-economic stability is needed to attract domestic and foreign fixed investments by continued deficit reduction, low inflati On and reduction in debt
• A growing private sector must be seen as the primary engine for creating wealth and jobs
• Privatisation as an urgent priority and well-targeted public investment
• An open market that permits free competition and prohibits monopolies from dominating any one sector is essential
• Effective deracialisation of patterns of ownership and control is needed in addition to speeding up the process of upward mobility through focused education and training
• A labour-market policy that has lower wages for young learners in the formal sector
• A system of acceptable minimum labour standards that combines improved standards with productivity end performance
• Manager efficiency must be increased and low trade barriers and incentives are required to nurture new business initiatives
• Groups suffering particularly from unemployment (black youth and rural women) should have access to special training, exemptions from regulations and special treatment in collective labour agreements
• A public works programme within budget constraints should be set up to establish local-level projects with the objective of transferring skills
• Free collective bargaining should be promoted as the primary regulator of labour-market rules
• Government must continue with the macro-economic strategy:that creates an environment of stability and growth
• The tax burden must be contained
• Efficiency in the use of tax funds must be increased
• Privatisation of state assets must continue as it increases private investment and efficiency

Programmes

• A comprehensive business initiative that focuses initially on tourism and education which has the potential to create new short-term and long-term jobs
• The Business Initiative was launched in mid-September by the South Africa Foundation, the Black Business Council and the National Business Initiative. Its primary aim is to make a decisive contribution to job creation and human capacity development. It will be contr oHed and managed by the private sector and support the tourism and schooling promotion initiatives
• Tourism initiatives win have a spin-offeffect on job creation in small businesses and other sectors, including transport, the environment, security and infrastructure
• Learnership programmes for the tourism industry should be set up with the potential of up to 5 000 people trained in the first year
• Business against crime initiatives are needed to support the tourism initiative
• Business participation in projects which win improve the quality, effectiveness and efficiency of the schooling system
• Schooling initiatives, including steps to reduce the repeater rate, further expansion of education and training systems and enhancement of the management of schools
• A banking pilot project for business loans between Rio 000 and R50 0.00 and support self ices to small businesses should be set up
• A special focus on youth employment could be facilitated through structured learning and workplace experience with a learnership allowance
• Youth internship programmes could be set up for vacation employment in occasional jobs to introduce youth to the workplace and provide supplementary cash income
• Accelerated housing delivery through Project Gateway by extending the financing of lowcost housing should be established

Financing

• The following are suggestions for funding the tourism initiative, which expects at least R1-billion to begin the fund
• Setting up a trust with voluntary contributions
• Companies listed on the Johannesburg Stock Exchange could be asked to contribute 0,15% of their total market capitalisation
• Private companies would be asked to donate at least 2% of their after-tax earnings
• The housing and micro lender initiatives are funded through business (banking) and government partnerships

Sources: Prospectus 198/09/291, The Job Summit, Business South Africaproposals towards an agenda [98/09/21/, and Submission by Business South Africa: Drovisional brief /98/08/061